Hasbro used to manufacture a toy called "Wonder World Aquarium". The toy included a powder that, when mixed with water, formed a gel that filled a plastic aquarium. Children could then place plastic fish in the aquarium and create underwater scenes. Cloud Corporation supplied the powder to Hasbro. The toy sold poorly, and Hasbro's need for the powder diminished,

The two companies discussed changing the powder's formula. Cloud believed the conversation amounted to an indication that Hasbro would continue to buy powder, so it produced large quantities. Although it did not receive an order from Hasbro, Cloud sent an order acknowledgement for 9.5 million packets to Hasbro. Hasbro made no objection to it.

Did the order acknowledgement create an enforceable agreement? What specific facts determine your answer?

Question

Business

Francesca Levy

31 October, 14:34

Hasbro used to manufacture a toy called "Wonder World Aquarium". The toy included a powder that, when mixed with water, formed a gel that filled a plastic aquarium. Children could then place plastic fish in the aquarium and create underwater scenes. Cloud Corporation supplied the powder to Hasbro. The toy sold poorly, and Hasbro's need for the powder diminished,

The two companies discussed changing the powder's formula. Cloud believed the conversation amounted to an indication that Hasbro would continue to buy powder, so it produced large quantities. Although it did not receive an order from Hasbro, Cloud sent an order acknowledgement for 9.5 million packets to Hasbro. Hasbro made no objection to it.

Did the order acknowledgement create an enforceable agreement? What specific facts determine your answer?

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Answers (1)

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Isiah Mayo · Answer 1

Answer:The acknowledgement order from cloud to Hasbro has most likely created an enforceable agreement

Explanation:An acknowledgement order is a letter containing the specific details of a intended supply of goods (such as price, quantity of goods, the warranty, conditions, supply date being proposed etc) from the seller to a willing buyer.

In this scenario, Hasbro had a business discussion with the seller, Cloud, which prompt cloud to draft and sent an acknowledgement order, this order can be inffered to have been received and accepted by Hasbro since there was no objection to it.

The contract is binding on Hasbro as it stands except if some of the conditions agreed upon when the initial business meeting was held were different from the one on the acknowledgement.